Scorpio Orders Six New Fuel-Efficient Product Tankers

MONACO – New York-listed Scorpio Tankers (STNG) on Thursday said that it has exercised options for the construction of four fuel-efficient MR product tankers and two ice-classed Handymax product tankers with Hyundai Mipo Dockyard of South Korea.

The order comes as a continuation of the company’s existing newbuilding program for fuel-efficient vessels. The newbuildings also come with fixed-price options for the construction of four additional Handymax vessels as well as an extension on previously obtained fixed-price options, Scorpio says.

“I have never seen at this stage of the market, the ability to get such significant returns on capital for newbuildings,” commented Robert Bugbee, President of Scorpio Tankers during his company’s 2012 earnings call.

Scorpio says the MR product tankers will cost approximately $33 million each, while the two Handymax ice class-1A (37,000 DWT) product tankers will be approximately $31.25 million each.

The MR Product tankers were previously reserved for another owner, and two of these vessels will deliver in the second quarter of 2014 with the third and fourth vessels to be delivered in the third and fourth quarter of 2014, respectively. The two Handymax vessels will be delivered early in the third quarter of 2014.

Scorpio has a total of 26 product tanker newbuildings on order in South Korea with both Hyundai Mipo and SPP Shipbuilding, which includes 20 MR and six Handymax ice class-1A vessels. Two of the newbuildings are expected to be delivered to the company by April 2013 and the remaining 24 by the end of 2014. Scorpio also has fixed-price options to construct a total of 12 additional newbuilding product tankers at these yards.

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